Bitcoin's market share hits 2-year high
Bitcoin's market share has reached a two-year high
The size of the share of the first cryptocurrency is an indicator of the market cycle and investor sentiment
Bitcoin's market share has reached a two-year high, surging to 52.76% on the night of October 21, the highest level since April 2021, as reported by TradingView. The total market capitalization of the cryptocurrency market now stands at $1.16 trillion, with Bitcoin's capitalization exceeding $600 billion.
The dominance of Bitcoin, or its share in the total market capitalization of all cryptocurrencies, often fluctuates in a cyclical manner. During bearish phases in the crypto industry, Bitcoin's dominance tends to increase, while during bullish periods when alternative cryptocurrencies (altcoins) outperform Bitcoin, its dominance tends to decline. This "dominance" index of the leading cryptocurrency serves as a valuable indicator of the market cycle and investor sentiment.
The recent breach of the 50% mark in Bitcoin's market share, for the first time in two years, holds significant meaning. Analysts have noted that this phenomenon is a consequence of the market's unique dynamics, occurring approximately every four years around the time of a Bitcoin halving event. This trend can persist for six months to a year following the halving. The increasing dominance of Bitcoin suggests that long-term investors are favoring it over altcoins, reallocating their funds and utilizing new capital inflows primarily for BTC investments.
Bitcoin halving, a programmed reduction in the production of new bitcoins distributed to miners, is a key factor in this cyclical pattern. In the early years of the cryptocurrency industry, Bitcoin's dominance was over 80%, but it dropped to a historic low of 35% in January 2018 after a bull market.
- BlackRock chief says customer demand for cryptocurrency is high
- Tether has frozen assets linked to conflicts in Israel and Ukraine
- Binance exchange burned more than $500 million worth of BNB tokens
- Ferrari has started accepting payment for cars in cryptocurrencies at the request of customers
- Cointelegraph explained the reason for publishing a fake news story about bitcoin-ETF approval
- WSJ: the U.S. government is one of the largest holders of bitcoin
- Elliptic uncovered 'ties to Russia' in laundering stolen FTX funds